First quarter 2017 results
Robust earnings and cash flow, new projects on track
Our year has started well. BP is focused on the disciplined delivery of our plans. First quarter earnings and cash flow were robust. We have shown continued operational momentum - it was another strong quarter for the Downstream and the first of our seven new Upstream major projects has started up, with a further three near completion. We expect these to drive a material improvement in operating cash flow from the second half.
Bob Dudley, group chief executive
- Underlying replacement cost profit* for the first quarter was $1.5 billion.
- First quarter operating cash flow, excluding payments related to the Gulf of Mexico oil spill*, of $4.4 billion. Including these payments, operating cash flow* was $2.1 billion.
- Dividend unchanged at 10 cents per share.
- Reported oil and gas production was 3.5mmboe/d in the first quarter, 5% higher than same period in 2016.
- New Upstream major projects* on track: Trinidad onshore compression project started up, another in ramp-up, and two more in commissioning.
- Downstream marketing growth and strong operational performance.
- $1.7 billion divestment of BP’s interest in SECCO petrochemical joint venture, subject to regulatory approvals.
* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 28.
Cautionary statement
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement: The discussion in this results announcement contains certain forecasts, projections and forward-looking statements – that is, statements related to future, not past events – with respect to the financial condition, results of operations and businesses of BP and certain of the plans and objectives of BP with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. In particular, among other statements, expectations regarding the expected quarterly dividend payment and timing of such payment; expectations regarding 2017 operating cash flow, organic capital expenditure, gearing, and divestment proceeds and the timing thereof; expectations regarding Upstream 2017 underlying production and second-quarter 2017 reported production; expectations regarding Downstream second-quarter 2017 refining margins and turnaround activity; plans and expectations with respect to the start-up of new Upstream projects; expectations with respect to new Upstream production though 2020; plans and expectations regarding development of Downstream markets in Mexico and Indonesia; intention to divest BP’s shareholding in SECCO; expectations regarding Rosneft dividends for 2016 and Rosneft operational and financial information for the first quarter of 2017; expectations with respect to the price of Rosneft’s acquisition of the Kondaneft project; expectations with respect to the timing and amount of future payments relating to the Gulf of Mexico oil spill; and expectations that claims arising under the 2012 PSC settlement will be substantially paid in 2017; are all forward looking in nature. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of BP. Actual results may differ materially from those expressed in such statements, depending on a variety of factors, including: the specific factors identified in the discussions accompanying such forward-looking statements; the receipt of relevant third party and/or regulatory approvals; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain divestments; future levels of industry product supply, demand and pricing, including supply growth in North America; OPEC quota restrictions; PSA effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; our access to future credit resources; business disruption and crisis management; the impact on our reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; decisions by Rosneft’s management and board of directors; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and other factors discussed under “Risk factors” in BP Annual Report and Form 20-F 2016 as filed with the US Securities and Exchange Commission.
